COVIVIO HOTELS

DEBT INVESTOR PRESENTATION

SEPTEMBRE 2018
 CONTENTS

1. COVIVIO HOTELS: A EUROPEAN LEADER 03

2. A WELL-ORIENTED HOTEL MARKET 13

3. ILLUSTRATIVE CASE STUDIES 19

4. A STRONG OPERATIONAL & FINANCIAL PROFILE 25

5. CREDIT HIGHLIGHTS 34

APPENDIX 37

2
1. COVIVIO HOTELS:
A EUROPEAN
LEADER
 A STABLE AND EXPERIENCED MANAGEMENT TEAM
SPEAKERS INTRODUCTION

Dominique Ozanne (40) Gaël Le Lay (45) Tugdual Millet (41)

CEO of Covivio Hotels and Deputy CEO of Covivio Deputy CEO CFO Covivio

13 years in Hotel investments through Covivio Hotels 18 years in Hotel investments 16 years at Covivio, of which 9 years as CFO

Of which 5 years in Covivio Hotels

> Dominique began his career at Covivo (ex. Foncière des

> Gaël worked 11 years at Accor, holding various positions > Tugdual has always been working at Covivio,
Régions) in 2003 as Head of projects to the Chairman
> He then headed the Hotel investment division of working successively as Portoflio Manager, Head
> He has been involved in the set up of Covivio Hôtels (ex.
Axa Real Estate, for 7 years of Corporate Development & Financing and
Foncière des Murs) in 2005 as Chief Operating Officer
Financial Director of the Office business
> Since 2011, he has been CEO of Covivio Hotels
> In 2009 Tugdual was appointed CFO of Covivio

> In 2018, Dominique was appointed Deputy CEO of Covivio

4
 A SOLID AND LONGSTANDING SHAREHOLDING STRUCTURE

Strong links with Covivio Hotels

Covivo Hotels is the #1 Pan European Hotel REIT
€3.1 billion market capitalization 1 Covivio involvement in Covivio Hotels:

1. Founded Covivio Hotels in 2005

Covivio 2. French SCA regime (limited partnership) with €7.5 billion market capitalization 1
42%
Covivio as General & Managing partner (“associé
17%
Crédit Agricole gérant”) Delfin
Assurances 28%
3. Providing Property management and support
8% functions (financing, corporate, etc.) Free float
Free ACM 48%
4% 4. Dominique Ozanne is both CEO of Covivio Hotels
float
and Deputy CEO of Covivio Covéa
Generali 9% 11% 8%
5% Cardif
CDC 5%
Since Sogecap (BNP Paribas) ACM
8%
2018 Since 2018
One of the three strategic segments of Covivio 8%
Crédit Agricole
Shareholders in both companies Assurances
22 %
Italy Offices 23%
German
 Covivio Hotels owns all the assets it rents and Residential
€15.3 bn
operates Portfolio value 15 %
Group Share2 Hotels in
 All key shareholders have subscribed to the €300 Europe
36 %
million capital increase in June 2018 France Offices vs 5% at
5% end-2010
Non-strategic 3

1 As of 30 August 2018. Including the contemplated merger with Beni Stabili

2 H1 2018 figures. Including the contemplated merger with Beni Stabili and the hotel acquisition in the UK; 3 Retail in France and Italy, Car parks, Residential France
5
THE EUROPEAN HOTEL REIT LEADER

Westin - Berlin Grand Central - Glasgow Motel One - Paris

1 2 3
Focus on major Target the most profitable Client centric: be the preferred
European cities hotels partner of main operators
Cities > 2 million overnight stays Mid to Upscale hotels 18 partners across 31 brands, to choose the
per year with EBITDAR margin >30% best operator for each hotel in each country

6
 13 YEARS OF A SUCCESSFUL STRATEGY
+13% OF GROSS ASSET VALUE PER YEAR ON AVERAGE

Support operators with Acceleration of European development

Sale and leaseback
strategic evolutions Strengthen our hotel expertise

Accor rent
2005 2010 2015 H1 20182
(% hotel annualised rent,
Group Share) 100% 58% 42% 24%
2016 & 2017
# operator 1 operator 3 operators 6 operators 18 operators
2012 2016
% portfolio value
100% 93% 70% 33%
Hotel portfolio value1 €1.1 bn €1.8 bn €2.4 bn €5.9 bn3
19 prime hotels in Germany
France and Belgium
Flagship deals €988 million
Accor 1: (FDMM)
158 B&B in France
123 assets €513 million
(sale and lease back)
€ 1 025 million
2017
14 hotels in the UK
€976 million
2014
17 hotels in Spain
€559 million

1 Portfolio value in 100% excluding retail

2Including the UK hotel portfolio acquisition (in terms of assets and Accor weight)
3 €5 189 m at H1 2018, plus the UK portfolio acquisition (€976 m) and excluding the retail portfolio (€259 m) 7
LEADING PLAYER IN EACH OF THE MAJOR EUROPEAN MARKETS
Belgium &
Netherlands
Germany
l €0.5 Bn GAV
A €5.9 bn hotel portfolio at end-June 20181
€5.4 bn in Covivio Hotels Group share1 United Kingdom l €1.5 Bn GAV

l €1.0 Bn GAV

388 hotels
46,777 rooms
France

l €2.2 Bn GAV

Critical size on each of our market

And €259 m of non-strategic retail assets

of which €79 million under disposal agreement Spain & Portugal

l €0.7 Bn GAV
1 Including the hotel acquisition in the UK 8
A WELL-DIVERSIFIED EUROPEAN FOOTPRINT FOCUS ON MAJOR
CITIES

80% major European cities

(cities with more than 2 million overnight stays annually)

Germany main cities

Germany UK major cities
Berlin, Dresde & Leipzig, Frankfurt, Munich, etc.
28% London, Edinburgh, Glasgow, Oxford, etc.

UK
16%
% in turnover1
France
33%
Spain ~80% in Barcelona & Madrid
13%

Belgium & Netherlands

Mainly Paris and major regional cities Portugal 9%
(Lyon, Marseille, etc.) 1%

Mainly Brussels & Amsterdam

1 Group Share, annualized rent and EBITDA (for operating properties). At end-June 2018 including the hotel acquisition in the UK at run-rate 9
 AN OPTIMISED MIX BETWEEN TYPE OF REVENUES
Covivio Hotels owns all the assets it rents or operates

: Real Estate owner

Revenue from operators1

53% 21% 26%

Fixed lease Revenue based on Revenue based on

turnover2 Net Operating Income

mostly with Accor, based on a mostly trophy assets in core location (Berlin, Lille)
safeguarding rents, sheltering against
percentage of turnover  ripping off taking full advantage of updwards trends.
volatility and against potential downward
the benefits of a world class Full flexibility: ability to manage or to swiftly adjust
trends. While indexing rents (CPI).
operator and convert hotels into a fixed-lease contract if needed

George Street - Edinburgh Mercure - Paris Park Inn - Berlin

1 Annualised H1 2018 figures, including the hotel acquisition in the UK at run rate 10
2 Includes the variable part of leases with guaranteed minimum rent
 LONG TERM PARTNERSHIP WITH THE LEADING OPERATORS
Long-term partnerships with the best operators in each countries
throughout a diversified tenant base

#1
#x Ranking as European Operators #8
In terms of rooms, 2017 (Hospitality On)
Leader in France & historical partner
Subsidiary of Jin Jiang (#5 global operator),
One of the global leaders in midscale/upscale hotels
#2

Accor 24%
Radisson 8% #3
Leader in the UK on midscale/upscale segments

Marriott 9%
One of the global leaders in midscale/upscale hotels
IHG
18% % in turnover1
NH 5%

Hotusa 3%
Barcelo 3% #9
B&B
15% Other
15%
In France #3

One of the leaders in Spain & Germany and a growing

player in the Netherlands

One of the leader in France and Germany on

economic segment
1 Group Share, annualized rent and EBITDA (for operating properties). At end-June 2018 including the hotel acquisition in the UK at run-rate 11
STRONG QUALITY OF THE PORTFOLIO

Focus on major European

Higher quality of hotels
cities1
80%2
73%2

% of assets in major
European cities % of upscale and midscale
65%
(mainly 4* and 5*)
53% 54%
58%

2015 2016 H1 2018 2015 2016 H1 2018

Target 100% by 2022 Target 75% by 2022

George street - Edinburgh

1 Cities with more than 2 million overnight stays per year

2 At H1 2018; Including the acquisition of the UK Hotel portfolio 12
 2.
A WELL-ORIENTED
HOTEL MARKET
 HOTELS IN EUROPE BENEFITING FROM ROBUST FUNDAMENTALS

European travel & tourism industry is growing Investments in travel & tourism
1 2 arrivals and spending 3 are accelerating

€bn European GDP from Travel & Tourism industry €bn International arrivals & tourism spending €bn European Travel & Tourism capital investments
at constant bn 2 000 at constant bn 2000 350 at constant bn
900

International arrivals (m)

+2.4% +2.9%
850 per year 1750
+3.0% 1 800 +2.4% per year
800 per year 1500 300 +3.5%
per year +2.6%
750 per year
1 600 per year 1250
700 +3.5% 250
650 +4.2% per year 1000
600 1 400 per year 750 200
550
500
500 1 200 150
450 250
400 1 000 0 100
2012 2013 2014 2015 2016 2017 2018E 2028F 2012 2013 2014 2015 2016 2017 2018E 2028F 2012 2013 2014 2015 2016 2017 2018E 2028F
Tourism spending International arrivals

2018 2028F
2018-2028F
2018-2028F
European GDP from
International arrivals: +3.5%
Travel & Tourism industry European Travel & Tourism investments: +2.9%
Tourism spending: +2.4%
+2.4% per year International tourist arrivals

2015 2020 2030

1.2 billion 1.4 billion 1.8 billion
Sources: World Travel & Tourism council; Eurostat; STR
14
 HOTEL MARKET: STRONG FUNDAMENTALS SUPPORTING
SUSTAINABLE GROWTH
Chain peneration
(rooms), 2018
Demand & supply evolution since 2009
average France, Germany, Spain & UK (rebased 100)

47%
(Million) Average yearly growth 34%
135
130
+3.3%
125
120 49%
+2.1%
115
110
Since 2013
105 Tourist arrivals: +14%
100 Number of rooms: +5%
95
66%

90
2009 2010 2011 2012 2013 2014 2015 2016 2017

Tourists arrivals Number of rooms

> Tourist arrivals acceleration has not been met with increase in room supply in Hotels chains have high and increasing penetration rate vs
Europe independent hotels:

> Very sound market with offer lagging behing demand c.50% chain hotels penetration rate
> Better quality of the offer average France, Germany, Spain & UK
> Increasing occupancy rate and better growth expectations
Source: PwC Source: Hospitality On

15
FOCUS ON COLLABORATIVE ECONOMY: AIRBNB
Airbnb is a new player in the hotel sector…
Importance of collaborative
economy
Airbnb was launched in 2007 in the US
and has spread globally since
> Airbnb pushed the development of
innovative lifestyle concepts in the
hotel industry
…focused on specific segments… …and limited by strict regulation
A polarized offer Short term lease Regulation in
Europe
Airbnb offers are mainly on economic
(<€100) and luxury segments (> €400) √ Berlin, Barcelona, Amsterdam and
London
- Required agreement for the municipality, frequent
Offer controls,
Airbnb & Abritel - Restriction on number of rental days:
Chain hotels Amsterdam (30 days in 2019), London (90 days)
- Licence to be obtained by hosts (Amsterdam),
- Registration of tourists
Barcelona: Hosts are required to inform police of
all stays within 24 hours prior to permit approval
< €100 €100 to €400 / night > €400
Example of sanction in Berlin: €100 K / property
France
> Less impact on upscale and Restriction to 120 days a year for short term leases
midscale segments and mandatory disclosure, daily taxes
New law 2017: mandatory and automatic
Source: MKG
transmission from Airbnb to tax authority
16
THE HOTEL INVESTMENT MARKET IS HIGLY LIQUID AND OFFERS
SOLID VISIBILITY
The Hotel Industry is seeing a strong and sustained investment momentum Fuelled by institutional and Private Equity investors

European investments in Hotel Real Estate x2.6 since 2012 > Institutional investors: 33%
33% of H1 2018 EMEA Hotel Investments
Of which
€23 bn
€21 bn
€20 bn
Saudi SWF Singapor SWF

€8 bn
> 29% of H1 2018 EMEA Hotel Investments
Private Equity investors: 33%
Of which

2012 2013 2014 2015 2016 2017 Source: CBRE

UK Germany France Spain Italy Others

> Emergence of newly structured markets such as Spain And other listed hotel platforms
> (+ 254% from 2012 to 2016)
> Structured and well established markets: UK, France, Germany

Market
Capitalization ~€2.6 bn ~€2.0 bn ~€500 million
(31/08/2018)

17
 A WELL-ORIENTED HOTEL MARKET OFFERING LEVERAGE FOR REAL
ESTATE OWNER

As the leading European Hotel Real Estate owner,

1 The Travel & Tourism industry is experiencing
momentum and growing at an unprecedented appears pivotal for most of the chain operators
offering it high bargaining power to:

operators are competing to establish in

2 ► Work with the best partners in each location
central and new locations while renewing their
offer ► Choose the best revenue structure for our assets (lease or
management contract)

Scarcity of long-term hotel real estate owners ► Impose performance clause to be flexible in the choice of our
operators
3 able to quickly deploy the full real estate value
chain to support chains strategy

18
 3.
ILLUSTRATIVE CASE
STUDIES
ACCORHOTELS: HIGHLIGHTS ON A SUCCESSFUL LONG-
TERM PARTNERSHIP
A €1.1 bn lease portfolio
74 hotels in France (89%) & Belgium (11%)
Variable rents indexed on hotel revenues

2005 Acquisition of 123 assets with 12-year leases

2015 Lease extension with AccorHotels: +12 years firm at passing rents

Disposal of 45 hotels with low performances in secondary locations

2016 Disposal price: €361 million
Average Daily Rate per room: ~€90

Strategy
> Asset management in partnership with HotelInvest
> Optimise portfolio through additional constructability Mercure - Paris

20
 GERMANY: AN ICONIC OPERATING PROPERTIES PORTFOLIO

60% of total
Hotel portfolio in ~€880 million mainly in Berlin1
Germany Revenue based on Net Operating Income

9 hotels 4-5* | City center locations

Park Inn – Berlin Westin - Berlin
60% Berlin ; 40% Dresden & Leipzig

Average Daily Rate per room: <90 € in Berlin

Strong performance
>30% +11%
EBITDA EBITDA growth
margin since acqui.
Pullman - Dresden Westin - Dresden

Drivers for future growth

Average Daily Rate Per Room still below comparable major European cities
Asset management leverage (such as the Ibis in Dresden)
Ebitda growth through capex program: room renovation and creation of suites in the Park Inn
1 Group share at H1 2018 21
A CRITICAL SIZE LEASE PORTFOLIO IN SPAIN

Successful entry in Spain:

December 2016

17 hotels 4-5* | City center locations

€559 million acquisition price

€168 thousands / room
AC Forum – Barcelona Eurostars Gran Marina - Barcelona
80% Barcelona & Madrid

Average Daily Rate per room: <100€ in

Barcelona & Madrid

Strong performance
>40% +7.2%
EBITDAR value creation
margin since acq.
Paseo Del Arte - Madrid NH Collection Colon - Madrid

Drivers for future growth

Variable rent component thanks to RevPar1 growth
Lease renegotiations trough rebranding: >+50% potential rent increase on the Madrid Paseo del Arte
Disposal of non-core hotels: potential disposal margin >15% on an asset in a secondary location
1 Revenue Per Available Room 22
2018 – ACQUISITION IN THE UK: START OF A LONG TERM
PARTNERSHIP WITH IHG (1/2)
€976 million1 14 hotels in lease in the major 4* and 5* hotels
Funding sources: UK cities Prime locations in city-centers
Closing Q2 2018
- Capital increase: €300 million 2,638 rooms
- Mortgage Debt: €454 million
- Cash: €223 million
Hotels location by city

Edinburgh
Blythswood square - Glasgow George Street - Edinburgh

Midland hotel - Manchester Russell square - London

Development projects

1 858 M£ with a conversion rate of 1.14 at 02/05/2018 23

 2018 – ACQUISITION IN THE UK: START OF A LONG TERM
PARTNERSHIP WITH IHG (2/2)
A highly secured transaction… …offering value creation levers

RevPar1 +5.6% in 2017

despite Brexit

The 4th most popular

New partnership
√ Dynamic destination in Europe
with a major hotel operator
market
√ Secured The 1st investment market
25-year triple net lease for hotels in Europe
operations
5.0% yield on minimum guarantee fully
indexed

6% target yield on a run rate basis

>30% EBITDAR Margin
through variable rent component

√ Upside Asset management

through capex & rebranding
potential

Oxford street - Manchester

1 Revenue Per Available Room 24

 4. A STRONG
OPERATIONAL AND
FINANCIAL PROFILE
 STRONG VISIBILITY ON REVENUE

Strong long-term visibility… … coupled with accelerating operating results

Lease properties
(owned and leased to 3rd parties)
> Lease maturity since 2015 >10 years Rents - like-for-like Year-on-Year growth

+3.2% +3.3%
> Occupancy rate since the beginning 100% +5.5% from variable +5.0% from variable
rents rents
2017 H1 2018
165

Operating properties
Hotel turnover by firm lease maturity in € million (owned and operated)
EBITDA – like-for-like Year-on-Year growth
14,5 years
in H1 20181
8 4 8 8 5
+2.8%2 +4.2%
1 2 2
2017 H1 2018
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Beyond

26
1 Including the hotel acquisition in the UK, first break option (hotels only); 2 Evolution on overall perimeter, like-for-like was not applicable in 2016
RESILIENCE OF ACCOR REVENUES

ranks 6th in the global hotel industry and #1 in Europe1

Most of Covivio Hotels variable rents today come from AccorHotels revenues,
representing 24% of total hotel revenue2, strongly decreasing from 62% in 2014

Evolution of the Accor rents on a like-for-like basis (100 basis in 2006)

119 118 119

118 117 116
114 113 112 113
111
105 115
110 111 112 112 113
108 108
104 104 106
100 102

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018
Rents Accor Inflation

Like-for like rental growth from Accor portfolio of 19% since 2006
Proven resilience to adverse context
> in 2009/10 after the economic crisis: only 1 year to revert to pre-crisis level
> in 2016/17 after the terrorists attacks in Paris: only 18 months to revert to pre-crisis level Mercure - Paris
1 Based on number of rooms. Sources: Accor 2017 Annual report
2 Based on H1 2018 annualised rent figures, including the acquisition of the UK hotel portfolio (on a run-rate basis). Based on rent and EBITDA 27
 BENEFITS FROM GEOGRAPHICAL DIVERSIFICATION

Geographic diversification offers the best strategy to rip-off the benefits of overall long-term dynamics,
while protecting against the specific volatility of each country

When applying the historical performance (RevPar since 2010) of Covivio Hotels’ main countries to the current
geographical exposure, it translates into
steady growth & low volatility
160 199
RevPar evolution since 2010
150 185
141 CAGR: +4.7%
140 165
139 Country weights in
138
130 136 Covivio Hotel portfolio
125
145 (% of turnover)2
120 France 33%
125
Germany 28%
110
UK 16%
105 Spain 12%
100 100
Belgium 7%
90 85 Other 3%

80 65
2010 2011 2012 2013 2014 2015 2016 2017 S1 2018

Weighted Revpar performance in Covivio Hotel portfolio France Germany UK Belgium Spain

1 Revenue Per Available Room, RevPar at country level

2Group Share, annualized figures. At end-June 2018 (EBITDA for operating properties) including the hotel acquisition in the UK at run-rate 28
Source: MKG
HOTELS, AN ATTRACTIVE ASSET CLASS (1/2)
1 A higher rental yield compared to other asset classes…

Covivio Net IFRS rental yield 2017 EBITDA margin vs peers1

5.8% 5.7% 92%

5.3%
5.5% 5.3%
5.2%
5.0% 80%
4.7% 4.8% 4.6% 4.5% 78%
74%
4.2%

2015 2016 2017

France offices Italy offices German Residential Hotels in Europe

Covivio Hotels lease French offices Italy offices German Residential

2 …with a low risk of vacancy

100% Occupancy rate since the beginning

>10 years Average firm lease maturity since 2015

1 FY 2017 data. Average of Vonovia, Deutsche Wohnen and LEG for German residential: Icade and Gecina for French offices and Beni Stabili for Italy offices 29
HOTELS, AN ATTRACTIVE ASSET CLASS (2/2)

3 Stronger anchoring of operators to real estate compared to other asset classes:

> Hotel real estate is central to the operating activity of operators

> Valuation of the business is tied to real estate

Low tenant risk and high reliance to Real Estate owner

Successful track record of renewing all the leases at passing rent:

With Accor in 2015 (+12 years), with B&B in 2017 (+12 years)

4 Profitability is key in keeping in place tenant and attracting new one

> Covivio Hotels to maintain targeting hotels with EBITDAR margin >30%

> Creation of long-term partnership with profitable operator

Meininger - Paris

30
 CONSERVATIVE CREDIT METRIC AND RESILIENT CASH FLOW
COVIVIO HOTELS
Disciplined debt ratios
Lower cost of debt
LTV target of 40%
3.32%

2.73% Debt maturities under control:

2015 5.8 years on average1
Group share LTV including duties Maturities in €million Group share1
2016 2.52% 937

2017 619
2.07%
40.9% H1 2018 369
287 237
177
13 29 30

2018 2019 2020 2021 2022 2023 2024 2025 2026 &
beyond
32.5% 31.2%
31.3%
H1 2018 Higher ICR
2015 2016 2017 Including UK 6.0x
acquisition, before
projected disposals 5.5x
H1 2018

4.6x 2017

3.9x 2016

2015
1 Restated: H1 2018 including the acquisition of the UK Hotel portfolio 31
 VERY STRONG COMMITTMENT OF SHAREHOLDERS TO SUPPORT &
FINANCE COVIVIO HOTELS DEVELOPMENT
UK portfolio
€976 million

Spanish portfolio
€559 million
19 hotels
(France, Germany, Belgium)
€988 million
Creation of FDM Management

B&B portfolio acquisition €300 m

€513 million
€3 204 m

€200 m

€2 422 m

€200 m
€2 097 m

€1 921 m €1 964 m
Capital
increase €125 m
€1 682 m
CAGR NAV: +16%
€1 414 m
EPRA Net Asset Value

2012 2013 2014 2015 2016 2017 H1 2018

 A DIVERSIFIED DEBT STRUCTURE WITH ROBUST HEDGING RATE

Breakdown of the debt Secured debt1

by nature as % of total portfolio

H1 20181 End 2018, expected Expected following

H1 2018 contemplated bond
Illustrative impact with a €300 m bond, Illustrative impact with a €300 m bond,
the UK portfolio acquisition, refinancing of certain mortgage debts & the UK portfolio acquisition
certain contemplated asset disposals Refinancing of certain mortgage debts &
Certain contemplated asset disposals

Corporate debt
7% Corporate Debt
~36% <30%
Unsecured bond 8%
9%
Unsecured bond
20%
Secured bond
8%
A Secured financial structure (H1 2018)
€2.2 bn €2.5 bn
Mortgage
Secured
loan
Mortgage loan bond
64%
76% 8%
Hedging rate Hedging average maturity

92% 7 years
Secured debt: 84% Secured debt: 72%

Liquidity2: ~€200 million of undrawn RCF and ~€50 million of cash

1 Group Share, Committed 1 Group Share, Outstanding debt

2 At end August 2018

33
5. CREDIT HIGHLIGHTS
 KEY CREDIT HIGHLIGHTS

Business profile Financial profile

1. Top 1 position in major European cities

2. Well diversified geographical footprint & operators base

3. Positioning on well-oriented market supported by mega trends 1. A supportive shareholder base

4. Long-term partnership with leading operators in each country 2. A long-dated debt maturity profile

5. Balanced portfolio, mainly midscale to upscale 3. A conservative 40% LTV target

6. High-predictability of revenues: 4. Limitation on secured debt

• >10-year average maturity 5. Strong liquidity position
• 100% occupancy
6. A strong commitment from Covivio
• Top asset quality
• Low tenant risk

7. High rental yield

35
APPENDIX
A) COVIVIO GROUP
 COVIVIO GROUP OVERVIEW
A €23 bn portfolio, with a European footprint1
Geographical split1 (Group Share)

Others
Spain
4%
1 2%
Offices
France & Italy Germany
27% France
€15.3 bn 44%
Group Share

42.1% 61.7% Italy

23%

Wohnen Asset type split1 (Group Share)

Hotels Résidential Non strategic
Germany 5%
Hotels
Non-listed 15%

Offices
(France,
Italy)
Covivio is listed in Euronext Paris (€6.8 bn market capitalisation2) Residential 58%
(Germany)
22%

1 Including the contemplated merger with Beni Stabili and the UK Hotels portfolio acquisition
2 As of 30 August 2018
38
COVIVIO HOTELS: A LIMITED PARTNERSHIP, WITH COVIVIO AT
THE HELM

The société en commandite par actions (SCA) is a limited partnership structure.

– Shareholders: The particularity of the SCA compared to other types of limited partnership is that it has two separate and
distinct kind of shareholders.
General partners: The general partners bear an unlimited and joint liability. In practice, they are usually appointed managers of the
company (FDM Gestion, owned at 100% by Covivio).
Limited partners: The limited partners should be considered equivalent to regular shareholders in other types of limited partnership
structure. The limited partners bear a limited liability.

– Management of the SCA: The SCA is managed by a manager (gérant, FDM Gestion) whose actions are controlled by a
supervisory board (Conseil de surveillance).

39
 COVIVIO: A SECURED AND SOLID DEBT PROFILE
H1 2018
LTV including duties Cost of debt S&P rating
42.4% 1.55% BBB, positive outlook

Strong diversification in financing Debt maturities under control Full compliance with the
6.0 years maturity covenants
(in million, Group share) (in million, Group share)
3 157
Investor
4% mortgages

Ratio Covenant June 2018

55% 32% LTV (covenant definition) 60.0% 46.1%
Bonds
unsecured 915 877 ICR 200% 541%
789 705
47% debt 615
414 Secured debt ratio 1 25.0% 6.7%
Bank mortgage 258
32
loans
17% 2018 2019 2020 2021 2022 2023 2024 2025 >2025
Corporate credits

Hedge
79% / 7.3 years

1Covivio stand alone

40
B) MAIN ASSETS
TOP 10 ASSETS – RUSSEL SQUARE, LONDON

334 rooms - 5*
1 restaurant
4 bars
9 meeting rooms

42
TOP 10 ASSETS – PARK INN ALEXANDERPLATZ, BERLIN

1 012 rooms - 4*
2 restaurants
1 bar
12 meeting rooms

43
TOP 10 ASSETS – THE WESTIN GRAND BERLIN

400 rooms - 5*
2 restaurants
1 bar
11 meeting rooms

44
TOP 10 ASSETS – CHARLOTTE SQUARE, EDINBURGH

199 rooms - 5*
1 restaurant
1 bars
6 meeting rooms

45
TOP 10 ASSETS – MERCURE TOUR EIFFEL

405 rooms - 4*

1 restaurant
1 bar
11 meeting rooms

46
TOP 10 ASSETS – EUROSTARS GRAND MARINA

291 rooms - 5*

1 restaurant
1 bar
1 outside pool
24 meeting rooms

47
TOP 10 ASSETS – GEORGE STREET, EDINBURGH

240 rooms - 5*
1 restaurant
1 bar
8 meeting rooms

48
TOP 10 ASSETS – AC FORUM, BARCELONA

364 rooms - 4*
1 restaurant
1 bar
1 outside pool
18 meeting rooms

49
TOP 10 ASSETS – IBIS CAMBRONNE, PARIS

523 rooms - 3*
1 restaurant
1 bar
6 meeting rooms

50
TOP 10 ASSETS – NOVOTEL GARE DE LYON, PARIS

253 rooms - 4*
1 restaurant
1 bar
6 meeting rooms

51
C) MAIN TRENDS
FOUR TRENDS RESHAPING THE HOTEL INDUSTRY
1 Demand is changing 2 Hotels are adapting

Strong emphasis on services…

Focus on consumer experience and price Guest kitchen F&B Highlight
optimization Collaborative fooding Friendly, gourmant & locavore restaurant

Key attributes and drivers of consumers are changing

Previous traveler New traveler

Meininger - Berlin Mama Shelter - Paris
Disconnected Connected
…and lifestyle concepts
Privacy Community
Lifestyle lobby Natural Design
Open common spaces Garden plots on the hotel rooftop
Money Experience

Status Relationship

Separated outlets Shared open-space

Citizen M – La Défense Yooma - Paris

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FOUR TRENDS RESHAPING THE HOTEL INDUSTRY

3 New concepts and products 4 Location is key

The Westin and the Park Inn, two highly profitable

New operators are emerging hotels in Berlin
Targeting young and urban travelers

Existing ones are adapting

A key value for Meininger:

AccorHotels new lifestyle IHG high-end “Meininger: central, affordable and modern”
brand experience-oriented brand Meininger headline

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 DISCLAIMER
This document comprises the written materials for an investors’ presentation relating to Covivio Hotels (Ex Foncière des Murs) (the Company) and its group in the context of a proposed offering of
securities (the Notes) (the Offering). This document also comprises information on Covivio and the Covivio Group.

The contents of this presentation are to be kept confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any
purpose.

Information contained in this presentation is solely for the purpose of presenting the recipients with a short introduction to the Company’s business.

This presentation does not constitute a prospectus or other offering document in whole or in part.

Information contained in this presentation is a summary only, and is qualified in its entirety by reference to the prospectus (including the documents incorporated by reference therein). The prospectus
will include a description of risk factors relevant to an investment in the securities to be issued by the Company and any recipients should review in particular the risk factors before making a decision
to invest.

This presentation does not constitute or form part of any offer or invitation to issue or any solicitation of any offer to subscribe for any security nor shall it (or any part of it) form the basis of (or be relied
on in connection with) any contract or investment decision in relation thereto. Recipients should conduct their own investigation, evaluation and analysis of the information set out in this document and
should rely solely on their own judgment, investigation, evaluation and analysis in evaluating the Company, its business and affairs.

The information and opinions contained in this presentation are provided as at the date of this document and are subject to change without notice.

No representation or warranty, express or implied, is made as to, and no reliance should be placed upon, the fairness, accuracy, completeness or correctness of the Information or opinions and
Covivio Hotels or Covivio, as well as their affiliates, directors, advisors, employees and representatives do not accept any responsibility or any liability (in negligence or otherwise) whatsoever for/or
make any representation or warranty, express or implied, as to the truth, fullness, accuracy or completeness of the Information (or whether any information has been omitted from the Information) or
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Certain statements included in this presentation are “forward-looking”. Such forward-looking statements speak only at the date of this document, involve substantial uncertainties and actual results
and developments may differ materially from future results expressed or implied by such forward-looking statements. Neither the Company nor any other person undertakes any obligation to update
or revise any forward-looking statements.

These statements may also relate to the targets and strategies of the Company’s Group. These forecasts are based on a series of assumptions, both general and specific, notably – unless specified
otherwise - the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union, as well as the application of
existing regulations. This information was developed from scenarios based on a number of economic assumptions for a given competitive and regulatory environment.

55
 DISCLAIMER
The Company may be unable:
•to anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences;
•to evaluate precisely the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in this presentation.

There is a risk that these projections will not be met. Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the group when basing their investment
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(together Relevant Persons). Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. This
document must not be acted or relied on by any persons who are not Relevant Persons.

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be offered or sold in the United States or to, or for the account or benefit of U.S. persons, absent registration or an exemption from registration under the Securities Act and applicable state securities
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56
CONTACT

PAUL ARKWRIGHT PARIS

PAUL.ARKWRIGHT@COVIVIO.FR 10. AVENUE KLÉBER

T +33 1 58 97 51 85 75116 PARIS

TEL.: +33 1 58 97 50 00
M +33 6 77 33 93 58

Covivio-hotels.fr